in-a-consumption-function-graph-what-does-a-point-above-the-45-degree-line-indic

Question

In a consumption function graph, what does a point above the 45-degree line indicate?

Accepted Answer

Consumption exceeds disposable income, indicating dis-saving.

Answer

The economy is in equilibrium.

Answer

Disposable income exceeds consumption, indicating savings.

Answer

Consumption equals disposable income.